Intel cuts Q4 sales forecast on hard disk supply shortage

News General Global 12 DEC 2011
Intel cuts Q4 sales forecast on hard disk supply shortage
Intel has cut its fourth-quarter revenue forecast by around USD 1 billion due to the shortage of hard disk drives in the industry following the flooding in Thailand. The company now expects fourth-quarter revenue to be USD 13.7 billion, plus or minus USD 300 million, lower than the previous expectation of USD 14.7 billion, plus or minus USD 500 million. While the company expects sales of personal computers to be up sequentially in the fourth quarter, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. Intel expects the shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012. The company also cut its gross margin forecast to 64.5 percent, from a previous estimate of 65 percent, plus or minus a couple of percentage points.

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